Hotel guests are ditching room service for online food-ordering services

Hotel guests are ditching room service for online food-ordering services


A recent report by Chicago-based online food-ordering service Grubhub Inc.  has revealed that, at least in the USA, hotel guests are more often taking their in-room meals from takeout restaurants rather than ordering room service.  According to Skift, an online travel trends site, and PFK Consulting, this has resulted in a 9.5% drop in revenues made from room service in hotels between 2007 and 2012.It’s unclear to what extent this trend is affecting Ontario hotels, but it’s not a surprising one. Given that the price of having food delivered from an outside restaurant is usually considerably cheaper than room service and Millennial travellers’ comfort with technology and their inclination towards the convenience that mobile devices provide, it is no wonder that this has become a regular practice among guests. Not to mention the usually narrow offerings a hotel with room service typically provides; Jonathan Zabusky, , President of GrubHub points out that the “more diverse” food available through services like his are making room service an increasingly less appealing option, with items  from Thai, Italian and Indian cuisine topping the list of commonly ordered food through GrubHub.

So, what are hotels to do when facing declining revenue from their own kitchens? Reducing prices for room service and minibar snacks is generally not seen as an option since the costs associated with these items is often difficult to recoup, so says Hilton CEO Christopher Nassetta. It becomes a matter of identifying new revenue opportunities via existing services or through new ones.

One way you can do discover these opportunities is with Guest Experience Survey performed by Braymark. We acquire meaningful, relevant data through professionally trained shoppers recruited by Braymark, many of whom have relevant hospitality industry backgrounds, to identify opportunities for growth as well as ways to build customer loyalty and improved staff training. Our mystery shopping program could be your key to keeping guests’ food expenses in your hotel and not with the pizza joint down the street.

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Brad Moyer is a serial entrepreneur by nature, unafraid to seize opportunity and create companies that solve problems. His first such endeavour was a graphic design business at the age of 16, and his early start set the pace for a career of innovation. Brad has since created and sold enterprise level businesses in the software industry, all while maintaining his community focus and being a family man. In his time away from the office Brad is a Referee for Volleyball Canada, coaches volleyball and sits on the Greater Niagara Chamber of Commerce Government Affairs Committee. He is intimately familiar with the challenges and triumphs of business ownership, made evident in the precise and specific nature of the reporting software and survey content employed in the Braymark portfolio of services.